ARCHIVES: Quarter 4 Year 2017

ECONOMIC NEWS:

Welcome to the Simulation!

This week you must enter ALL start up decisions and contracts to begin your first NON-trial decisions, due Friday October 6th at 12:00 noon Eastern Time. Absolutely NO history will be saved from this practice round so please ignore any "current" numbers in your decision menus. Your firm has ZERO stock outstanding, ZERO inventory, etc..

 

The first NON-trial decision will take place in Quarter 1, 2018. General economic conditions and demand will be similar to that of this practice round, with the exception of factors influenced by firm decisions. If the direct competitors in your market group improve their decisions for the first non-trial decision, then demand for your firm's products may not be as high if you do not also improve.

 

Remember that it takes two quarters to build manufacturing plants before production can begin, so please purchase finished goods from Peacock Industries (Advanced Firm 18) for the first two quarters. You do not need to negotiate a contract with Peacock. Instead, enter the quantity of units of each type of product you want to purchase in each area to which you want the finished goods delivered (a total of 4 contracts if buying both product types for both areas). You MUST use the Peacock sales prices per unit, however.

Per Unit Price of Product Type 1 = $56

Per Unit Price of Product Type 2 = $99

 

If you have questions, please read the User Guide (linked from the "tools" tab of the landing page, and also here: https://globalview.org/txt_overview.html

If you cannot find the answer you need from the User Guide you may ask your Simulation Administrator for assistance: Globalview@earthlink.net

 

Welcome to the Simulation!

 

 


ADMIN NOTES:

1. Firms that opened in Quarter 1, 2017 must remember to set all change variables to ZERO to maintain "Current" numbers listed in their decision menus. Stock Issue, Long Term Loans, Plant Capacity, sales rep Salary and Commissions must be set to zero to maintain existing numbers. If you want to increase, enter the amount by which you want to increase or (-) to decrease current numbers.

 

2. If you hired trainees in Quarter 1, 2017, do not forget to place them as sales reps in Quarter 2, 2017. To place a trainee as a sales rep, enter the NEW TOTAL number of sales reps in the area to which you are placing the sales rep. Enter a zero into the trainees decision to prevent hiring additional trainees. If you enter a negative value you will fire these sales reps and trainees.

 

3. Remember that you do NOT need to negotiate a contract with Peacock (Advanced Firm 18). For the first two quarters of the simulation, Peacock will supply your firm with finished goods in any quantity without first negotiating the contract. Any firm other than Peacock must first have agreed to the terms of the contract before it can be submitted to the database. Also note that Peacock does not sell raw materials or plant capacity. To purchase raw materials use the "Raw Materials" decision form. To begin construction on a manufacturing plant, use the "Capacity" decision menu.

 

4. To access the chat room/message board forum, please request the general forum password from your simulation administrator, Kristi. Kristi will send you the general forum password that will allow you to enter the platform. You may then register for an individual firm account with the forum to post messages or enter the chat room. The chat room/message board forum is how your simulation administrator Kristi will make special announcements mid-week, so it is important that all firms have an account set up.

 

5. Remember the importance of Quality Control (QC) in the Scent Industry. In the Scent Industry, QC is as important to branding a product as advertising, pricing, and sales reps. Enter the QC as a total budget with a percentage of the budget to be directed to Product 2. To ensure a consistent level of quality from quarter to quarter, be sure to BASE you budget on a per unit value (new purchases, units produced during the quarter, and any units still in inventory from previous quarters).

 

6. To request a Special Report, please contact your simulation administrator, Kristi. The Special Report contains additional reporting data on all firms within a given market group (ROI, ROE, Current Ratio, Production Efficiency Factor, Average Compensation, and more). The report is updated each quarter with new data and we do not archive old reports, so please request the special report for a given quarter before the following quarter's deadline, or the report may not be available. There is a $2000 simulation dollar fee for each report, billed as a miscellaneous expense in the following quarter.

 


 

ECONOMIC NEWS:

The EU unemployment data indicates that the recovery has finally reached lower income workers, especially in depressed areas of Greece and Spain.  This is especially true in the tourism sector.  Housing markets throughout the EU have increased demand and prices are slowly accelerating upward.

 

GDP increased about 1% for the quarter.  Economists and central banks see the slower rate of growth as good news.  A 4% annual rate can be maintained with a minimum of inflationary pressures.  Some point to the rate and suggest the tighter monetary policy is working.  Other economists suggest the rate is simply ‘the calm before the storm’.  They say the slower rate is an anomaly and probably due to bad weather during the holiday season and the realignment of consumer needs and wants with their now increasing levels of income.  T-bill rates rose as did corresponding rates in the EU.  The coordination of NAFTA/EU monetary policy have kept exchange rate movements in a narrow range.

 

NAFTA unemployment data shows continual quarter-to-quarter improvement.  Canada’s personal income levels are increasing at a faster rate than in the United States.  Some suggest the rapid increase is due to their growing export in the energy sector, mainly oil, gas and electricity.  Also, increased tax revenues are being invested in infrastructure, both new and refurbished.

 

U.S. corporate tax rates were left at current levels as Congress focuses a major tax overhaul on personal incomes.

 

Japan had a marked improvement in GDP growth during 2016. 

 

China reported upper-end consumers are favoring foreign made products over Chinese equivalents as seen in a host of products from autos to perfume.  While exports are much larger than imports, the government voiced concern about the trend.

 



INDUSTRY:

 

Pending results of the first NON-trial decision due Friday October 6.

 


 

CONTRACT

 

Peacock Prices

P1 = $56 per unit

P2 = $99 per unit

 

*Remember that Peacock does NOT sell raw materials or plant hours. To purchase raw materials, use the "Raw Materials" decision form. These materials must be ordered one quarter in advance of using them in production. These will always be your cheapest source of raw materials.

 

To order plant hours, use the "Capacity" decision form to order stage 1 and stage 2 plant hours in the area or areas of your choice.